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Resolution 2023-32544 RESOLUTION NO. 2023-32544 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CREATING, PURSUANT TO CHAPTER 170, FLORIDA STATUTES, AND SUBJECT TO THE APPROVAL OF A MAJORITY OF THE AFFECTED PROPERTY OWNERS, A SPECIAL ASSESSMENT DISTRICT TO BE KNOWN AS"THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT," FORA TERM OF TEN (10)YEARS, TO STABILIZE AND IMPROVE THAT CERTAIN AREA OF THE CITY OF MIAMI BEACH HEREIN REFERRED TO AS THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT, WHICH DISTRICT IS GENERALLY BOUNDED ON THE WEST BY ALTON ROAD, ON THE EAST BY INDIAN CREEK CANAL, AND CONSISTS OF PROPERTIES ABUTTING WEST 41ST STREET / ARTHUR GODFREY ROAD, THROUGH PROMOTION, MANAGEMENT, MARKETING, AND OTHER SIMILAR SERVICES (THE "SERVICES"); PROVIDING FOR THE LEVY AND COLLECTION OF SPECIAL ASSESSMENTS, IN THE AMOUNT OF $195,246 IN THE FIRST YEAR, WHICH SHALL INCREASE BY FIVE (5%) PERCENT EVERY TWO (2) YEARS; INDICATING THE LOCATION, NATURE, AND ESTIMATED COST OF THE SERVICES, WHOSE COSTS ARE TO BE DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THE MANNER IN WHICH SUCH SPECIAL ASSESSMENTS SHALL BE MADE; PROVIDING • WHEN SUCH SPECIAL ASSESSMENTS SHALL BE MADE; DESIGNATING THE LANDS UPON WHICH THE SPECIAL ASSESSMENTS SHALL BE LEVIED; PROVIDING FOR PUBLICATION OF THIS RESOLUTION, IN ACCORDANCE WITH SECTION 170.05, FLORIDA STATUTES; AUTHORIZING THE CITY ADMINISTRATION TO CAUSE TO BE MADE A PRELIMINARY ASSESSMENT ROLL, IN ACCORDANCE WITH SECTION 170.02, FLORIDA STATUTES; AND UPON COMPLETION OF SUCH PRELIMINARY ASSESSMENT ROLL, PROVIDING THAT SUCH ASSESSMENT ROLL SHALL BE ON FILE WITH THE CITY CLERK'S OFFICE AND OPEN TO THE INSPECTION OF THE PUBLIC. WHEREAS, Chapter 170, Florida Statutes, authorizes any municipality, subject to the approval of a majority of the affected property owners, to levy and collect special assessments against property benefited for the purpose of stabilizing and improving retail business districts, wholesale business districts, or nationally recognized historic districts, or any combination of such districts, through promotion, management, marketing, and other similar services, in such districts of the municipality; and WHEREAS, on October 26, 2022, the Mayor and City Commission adopted Resolution No. 2022-32348 which, in pertinent part, authorized the Offices of the City Manager and City Attorney to work with the Steering Committee of 41st Street commercial property owners (the "Steering Committee"), for the purpose of establishing a special assessment district, pursuant to Chapter 170, Florida Statutes, to stabilize and improve the 41st Street retail business district, through promotion, management, marketing, and other similar services (Resolution No. 2022- 32348 is attached hereto as Exhibit"A"); and WHEREAS, the special assessments levied within.the proposed special assessment district, to be known as the "41ST Street Business Improvement District" (the "District"), shall be used to provide the services described in Exhibits "B" and "C", attached hereto and incorporated herein (the "Services"); and WHEREAS, the District shall consist of those commercial properties abutting 41 st Street/ Arthur Godfrey Road, and which are generally bounded on the west by Alton Road, and on the east by Indian Creek Canal; provided, however, that the following types of properties shall be excluded and exempted from the District: (1) residential properties; (2) any property owned by a City, County, State, or Federal governmental entity or school district; and (3)any property owned or occupied by a religious institution and used as a place of worship or education (as defined in Section 170.201(2), Florida Statutes); and WHEREAS, an assessment plat of the proposed District, showing the areas to be assessed, as required in section 107.04, Florida Statutes, is on file with the Office of the City Clerk where it is available for inspection by the public, and is also attached hereto and incorporated herein; and WHEREAS,the Mayor and City Commission hereby determine that it is in the best interest of the City, and that of the District, to provide, or cause to be provided,the Services for the District and, as such, wish to defray the cost of the Services by levying special assessments upon the affected properties within the District, at the rates set forth in Exhibit "B" ("Assessments"), which Assessments shall increase every two years by five percent(5%) percent; and WHEREAS, the Mayor and City Commission further determine that special benefits shall accrue to the properties within the District from the Services, and that the Assessments shall be made in proportion to the benefits received; and WHEREAS, an estimated Year One budget outlining the proposed Services and estimated costs thereof, is attached hereto as Exhibit"C",and, pursuant to Section 170.04, Florida Statutes, is on file with the City Clerk's Office, and is available for inspection by the public; and WHEREAS, the Mayor and City Commission have determined that the Assessments to be levied shall not exceed the special benefits to the affected properties within the District. NOW,THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: SECTION 1: All legislative findings and recitals contained in this Resolution are hereby adopted and incorporated herein. SECTION 2: Pursuant to Chapter 170, Florida Statutes, the Mayor and City Commission hereby authorize a special assessment to be levied and collected, and hereby create a special assessment district, to be known as the "41st Street Business Improvement District," for a term of ten (10) years, subject to the approval of the majority of the affected property owners in the District,for the purposes of stabilizing and improving the 41 st Street retail business district,through promotion, management, marketing, and other similar services. 2 SECTION 3: The boundaries of the proposed District are as follows: All lots and lands adjoining and contiguous or bounding and abutting upon such improvements or specially benefited thereby and further designated by the Assessment Plat, attached hereto and incorporated herein as Exhibit"D". SECTION 4: The nature of the Services to be provided is set forth in Exhibits "B" and "C", attached hereto and incorporated herein. SECTION 5: The total estimated cost of the Services to be funded by the proposed Assessments is approximately$195,246 for the first year, and shall increase by five(5%) percent every two (2)years. SECTION 6: The Assessments shall be levied in accordance with the applicable provisions of Chapter 170, Florida Statutes,for the purposes of defraying the cost of the Services, as described in the Year 1 Budget, and in accordance with the Methodology and Scope of Services Narrative, attached as Exhibits "B" and "C", respectively, and incorporated herein. SECTION 7: At the time of adoption of the Resolution by the Mayor and City Commission, the Exhibits to this Resolution shall be on file with the City Clerk and open to inspection by the public including: the Assessment Plat, showing the area to be assessed; a description of the Services; and an estimate of the cost of the Services. SECTION 8: Following approval of this Resolution, the City Administration is hereby authorized and directed to cause to be made a preliminary assessment roll, as promptly as possible, which shall show the properties assessed by folio number;the amount of benefit to each property; and the special assessments against each property assessed by folio number. (A draft preliminary assessment roll is attached hereto as Exhibit"E".) SECTION 9: The assessment shall be payable in one installment per year to the Finance Director of the City, or the Finance Director's designee, on such date as shall be contained in a bill to be mailed to each property owner within the District at least thirty(30) days prior to the due date, and following the confirmation by the Mayor and City Commission of the Final Assessment Roll. Installments not paid when due shall become due and payable in accordance with statutory provisions and shall remain liens, coequal with the lien of all state, county, district, and municipal taxes, superior in dignity to all other liens, titles, and claims, until paid, and shall bear interest, at such rate or rates as specified in Section 170.09, Florida Statutes. SECTION 10: Upon completion of the preliminary assessment roll, the Mayor and City Commission shall adopt a subsequent Resolution to fix a time and place at which the owners of the property to be assessed, or any other persons interested therein, may appear before the Mayor and City Commission and be heard as to the propriety and advisability of the Assessments or the provision of the Services, the costs thereof, the manner of payment therefor, or the amount thereof to be assessed against each property so serviced, all in accordance with Chapter 170, Florida Statutes. SECTION 11: The City Clerk is hereby directed to cause this Resolution to be published one time in a newspaper of general circulation published in the City. 3 • SECTION 12: This Resolution shall become effective upon the date of its adoption herein, provided, however, that if the proposed special assessment does not receive the approval of a majority of the affected property owners (fifty (50%) percent plus one) pursuant to an election to be duly conducted by the City Clerk, the Resolution shall be null and void. PASSED and ADOPTED this all day of illu1"ok , 2023. ATTEST: Dan Gelber, Mayor MAR 3 1 2023 Ra el E. if ranado, City Clerk APPROVED AS TO FORM AND LANGUAGE (Sponsored by Commissioner Steven Meiner) &FOR EXECUTION 16 -23 B•F984 City Attorney QV__ Date it INCORPORATED! 4 • Resolutions - R7 M MIAMI BEA COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: March 27, 2023 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CREATING, PURSUANT TO CHAPTER 170, FLORIDA STATUTES, AND SUBJECT TO THE APPROVAL OF A MAJORITY OF THE AFFECTED PROPERTY OWNERS, A SPECIAL ASSESSMENT DISTRICT TO BE KNOWN AS "THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT;" FOR A TERM OF TEN (10) YEARS, TO STABILIZE AND IMPROVE THAT CERTAIN AREA OF THE CITY OF MIAMI BEACH HEREIN REFERRED TO AS THE 41ST STREET BUSINESS IMPROVEMENT DISTRICT, WHICH DISTRICT IS GENERALLY BOUNDED ON THE WEST BY ALTON ROAD, ON THE EAST BY INDIAN CREEK CANAL, AND CONSISTS OF PROPERTIES ABUTTING WEST 41ST STREET / ARTHUR GODFREY ROAD, THROUGH PROMOTION, MANAGEMENT, MARKETING, AND OTHER SIMILAR SERVICES (THE "SERVICES"); PROVIDING FOR THE LEVY AND COLLECTION OF - SPECIAL ASSESSMENTS, IN THE AMOUNT OF $195,246 IN THE FIRST YEAR, WHICH SHALL INCREASE BY (5%) PERCENT EVERY TWO (2) YEARS; INDICATING THE LOCATION, NATURE, AND ESTIMATED COST OF THE SERVICES, WHOSE COSTS ARE TO BE DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THE MANNER IN WHICH SUCH SPECIAL ASSESSMENTS SHALL BE MADE; PROVIDING WHEN SUCH SPECIAL ASSESSMENTS SHALL BE MADE; DESIGNATING THE LANDS UPON WHICH THE SPECIAL ASSESSMENTS SHALL BE LEVIED; PROVIDING FOR PUBLICATION OF THIS RESOLUTION, IN ACCORDANCE WITH ' SECTION • 170.05, FLORIDA STATUTES; AUTHORIZING THE CITY ADMINISTRATION TO CAUSE TO BE MADE A PRELIMINARY ASSESSMENT ROLL, IN ACCORDANCE WITH SECTION 170.02, FLORIDA STATUTES; AND UPON COMPLETION OF SUCH PRELIMINARY ASSESSMENT ROLL, PROVIDING THAT SUCH ASSESSMENT ROLL SHALL BE ON FILE WITH THE CITY CLERK'S OFFICE ANDOPEN TO THE INSPECTION OF THE PUBLIC. RECOMMENDATION Adopt the Resolution which is sponsored by Vice Mayor Steven Meiner. Page 963 of 1292 ' I BACKGROUND/HISTORY Miami Beach's Middle" Beach neighborhood is accessed via 41st Street, a major east-west thoroughfare and commercial corridor. The 41st Street corridor is largely flanked by low-scale, commercial properties featuring street level retail. The corridor also features nearby schools, and houses of worship. The business environment is primarily characterized by medical and professional services offices, restaurants, and other retail uses. Chapter 170, Florida Statutes, authorizes any municipality, subject to the approval of a majority of the affected property owners, to levy and collect special assessments against property benefitted for the purpose of stabilizing and improving retail business districts, Wholesale business districts, or nationally recognized historic districts, or any combination of such districts, through promotion, management, marketing, and other similar services. On February 25, 2021, as reported in Letter to Commission (LTC) 125-2021, the Mayor's 41st Street Blue Ribbon Committee passed a motion requesting the City conduct an educational and informational public webinar to inform the 41st Street community about the benefits of creating a special assessment district. On March •23, 2021, the City Administration in collaboration with the Office of the City Attorney conducted the town hall webinar. In addition to online notice, an invitation letter was mailed to businesses on 41st Street with a business tax receipt (BTR) and all owners of commercial property on 41st Street, with informal notice also emailed to Mid-Beach neighborhood associations. A group of 41st Street commercial property owners of commercial real estate abutting 41 sT Street (the "Steering Committee"), in an area generally bounded by the Indian Creek Canal on the east and Mon Road on the west, has requested that the City of Miami Beach establish a business improvement district (BID) under Chapter 170, Florida Statutes, to enhance and improve the 41st Street business corridor. If the City Commission and the property owners approve the creation of the district, as detailed below, the Steering Committee will incorporate an entity to be known as the 41st Street Business Improvement District (hereinafter the "BID"), which would administer the special assessment district. On October 26, 2022, the Mayor and City Commission adopted Resolution No. 2022-32348 which authorized the Offices of the City Manager and City Attorney to work with the Steering Committee, for the purpose of establishing a special assessment district, pursuant to Chapter 170, Florida Statutes, to stabilize and improve the 41st Street retail business district, through promotion, management, marketing, and other similar services. Staff has met and corresponded with the Steering Committee on numerous occasions for this purpose. ANALYSIS The attached Resolution is the first step under Chapter 170, Florida Statutes, to create the proposed special assessment district and is hereby submitted for consideration by the Mayor and City Commission. A. The Proposed "41st Street Business Improvement District" The attached Resolution creates; subject to the approval of a majority of the affected property owners, a special assessment district, to be known as the "41st Street Business Improvement District" (the "District"), for a term of ten (10) years, to stabilize and improve the 41st Street business Page 964 of 1292 district, which consists of properties abutting 41st Street and generally bounded by the Indian Creek Canal on the east and Alton Road on the west, through promotion, management, marketing, and other similar services. The Resolution provides for the creation of a preliminary assessment roll; provides for the annual levy and collection of special assessments, in the amount of$195,246; indicates the location, nature, and estimated cost of those services which costs are to be defrayed by the special assessments; provides the manner in which such special assessments shall be made; provides when such special assessments shall be made; designates the lands upon which the special assessments shall be levied; provides for publication of this Resolution; and authorizes other related actions. The material terms for the proposed District are as follows: 1. District Boundaries The District shall consist of those commercial properties abutting 41st which are generally bounded by the Indian Creek Canal on the east and Alton Road on the west; provided, however, that the following properties shall be excluded and exempted from the District: (1) residential properties; (2) any property owned by a City, County, State, or Federal governmental entity or school district; and (3) any property owned or occupied by a religious institution and used as a place of worship or education (as defined in Section 170.201(2), Florida Statutes). Pursuant to Section 170.04, Florida Statutes, at the time of the adoption of the attached Resolution, there shall be on file with the City Clerk an assessment plat showing the area to be assessed, which assessment plat shall be open to the inspection of the public.A proposed assessment plat is attached as Exhibit"D" to the Resolution. 2. Term/Duration of the District The term/duration of the proposed District is ten (10)years. 3. Total Annual Amount of Special Assessments to be Levied and Collected The initial total amount of special assessments to be levied and collected annually shall be approximately$195,246. Every two (2)years, the assessment rate for each property shall increase by five (5%) percent. Each year, prior to preparing an annual Budget and prior to the City levying any assessments, the BID shall be responsible for reviewing the assessment roll to verify the actual use of each assessed property. If the BID determines that an amendment to the assessment roll is necessary, consistent with the District's assessment methodology, the BID shall submit a written request to the City. Any change to the assessment roll would require the City's prior written approval. 4. Assessment Methodologies To ensure a fair and equitable assessment consistent with Florida law, each property's assessment must be proportionate to the special benefit derived therefrom. To that end, the assessment methodology is based on the predominant use on the ground floor, specifically, whether the ground floor contains retail or commercial use. Given that the District primarily serves as a retail business Page 965 of 1292 improvement district, the assessment rate is higher for properties with ground floor retail or commercial use: a. Properties with a ground floor retail commercial use of fifty percent(50%) or greater will be assessed at the rate of fifty cents ($0.50) per square foot of lot size. b. All other non-exempt properties will be assessed at a rate of twenty-five cents ($0.25) per square foot of lot size. 5. Services to be Provided The special assessments shall be used to fund those Services described in Exhibits "B" and "C" to the Resolution. Per the District's budget and workplan strategy described in Exhibit B, in addition to general and administrative costs, the first year budget projection "prioritizes the development of a strong foundation for the future of the district. This includes the creation of a website and marketing plan to promote and enhance economic vitality in the area. Additionally, the BID is committed to advocating for the interests of businesses and property owners within the district by working in a unified voice to establish positive and productive relationships with the City of Miami Beach." The District will fund consulting, advocacy, and marketing services related to issues germane to the District. Further, as noted in the scope of services narrative, "[a]s the district evolves and changes over the 10-year lifespan of the BID, services will adapt to meet the evolving needs of the district. This may include expanding marketing efforts to attract new businesses, implementing new programs to improve the district's, safety, walkability and accessibility, and advocating for new policies that benefit the district." Should the BID expend funds on programming, events and activations on 41st Street, any ny activities on public property within the District are subject to City approval. The BID may conduct programming on City property by either (i) obtaining a special event permit, or (ii) partnering with the City or a City permittee. B. Procedure for Creating the District, Following the Adoption of the Attached Resolution 1. Notice Requirement Upon adoption of the attached Resolution, and pursuant to Section 170.05, Florida Statutes, the City shall cause the Resolution to be published one time in a newspaper of general circulation published in the City. 2. Preliminary Assessment Roll Additionally, upon adoption of the attached Resolution, and pursuant to Section 170.02, Florida Statutes, the Administration shall cause to be made a preliminary assessment roll, in accordance with the method of assessment provided for in the Resolution, which assessment roll shall show the lots and lands assessed, the amount of benefit to and the assessment against each lot or parcel of land, and the number of annual installments in which the assessment is divided. Upon completion of the preliminary assessment roll, it shall be made available for public inspection in the City Clerk's office. (A draft of the preliminary assessment roll is attached hereto as Exhibit"E"). Page 966 of 1292 3. Special Mail Ballot Election Following adoption of the attached Resolution by the Mayor and City Commission, and completion of the preliminary assessment roll, the City Clerk, in consultation with the City Attorney's Office, shall conduct a special mail ballot election for the majority (50% plus one) of the affected property owners to approve the proposed special assessment. 4. Final Hearing for the Mayor and City Commission to Hear Testimony. Decide Whether to Levy Special Assessments, and Meet as an Equalizing Board to Adjust and Equalize the Assessments on a Basis of Justice and Right Upon completion of the preliminary assessment roll, and upon the approval of the District by a majority of the affected property owners, the Mayor and City Commission must adopt a subsequent Resolution to schedule a public hearing at which the owners of the properties to be assessed or any other persons interested therein may appear before the Mayor and City Commission and be heard as to the propriety and advisability of the assessments proposed to be levied, or the provision of the Services, the costs thereof, the manner of payment therefor, or the amount thereof to be assessed against each lot so serviced. Following the public hearing, the Mayor and City Commission shall make a final decision on whether to levy the special assessments. At that time, the Mayor and City Commission shall also serve as an "equalizing board" to hear and consider any and all complaints as to the special assessments, and shall adjust and equalize the assessments on a basis of justice and right. When so equalized, and approved by Resolution of the Mayor and City Commission, a final assessment roll shall be filed with the City Clerk, and the special assessments (as set forth in the final roll) shall stand confirmed and remain legal, valid, and binding liens upon the property against which such assessments are made, until paid. SUPPORTING SURVEY DATA As currently proposed in its Year 1 Budget, the majority of the District's services focus on branding and marketing. According to the 2022 City of Miami Beach Community Survey, when asked what type of support would help advance their business, the highest number of responses—reflecting some 27.5% of businesses participating in the survey—selected 'support with business marketing, branding, and social media'. FINANCIAL INFORMATION There is no direct fiscal impact to the City through adoption of the Resolution. If the City Commission subsequently approves, by Resolution, a special mail ballot election, the related costs will be subsidized entirely by the Steering Committee and the Office of the City Clerk will administer the election. If the creation of the District is ultimately approved, a memorandum of understanding will be negotiated and executed outlining the role of the City and the B I D including that personnel from the City Administration will be responsible for administrative processing of annual assessments with costs incurred in connection with the mailing of the annual assessments levied upon BID properties. CONCLUSION The attached Resolution shall become effective upon the date of adoption; provided, however, that if the proposed special assessment does not subsequently receive the approval of a Page 967 of 1292 majority(50% plus one)of the affected property owners, the Resolution shall be null and void. The Administration recommends that the City Commission proceed to initiate creation of the proposed District by adoption of the Resolution as set forth above. The next step in the process is for the City Commission to adopt a Resolution calling for a special mail ballot election of the affected property owners, which election will be administered by the Office of the City Clerk. The owners of property proposed to be assessed will vote on whether to assess themselves, and if a majority of the owners vote to approve the assessments, any concerned property owner will, subsequently, have an opportunity to address the City Commission (serving as the Equalizing Board) at a duly noticed public hearing. With commercial property owners voting to assess themselves and invest collectively in services that benefit the district, the BID could serve as an economic funding tool and forge a unified voice among 41st Street stakeholders in their relationship with the City. Applicable Area Middle Beach Is this a "Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? Yes No Strategic Connection Prosperity- Revitalize targeted areas and increase investment. Legislative Tracking Economic Development Sponsor Sponsored by Vice-Mayor Steven Meiner ATTACHMENTS: Description o Exhibit A- Resolution 2022-32348 o Exhibit B - Budget& Methodology Narrative o Exhibit C -Year One Budget o Exhibit D -Assessment Plat o Exhibit E -Assessment Roll Page 968 of 1292 RESOLUTION NO. 2022-32348 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE OFFICES OF THE CITY . MANAGER AND CITY ATTORNEY TO WORK WITH THE STEERING COMMITTEE OF 41ST STREET COMMERCIAL PROPERTY OWNERS, FOR THE PURPOSE OF ESTABLISHING A SPECIAL ASSESSMENT DISTRICT, PURSUANT TO CHAPTER 170, FLORIDA STATUTES, TO STABILIZE AND IMPROVE THE 41ST STREET RETAIL BUSINESS DISTRICT, WHICH IS LOCATED WITHIN THE CD-1 AND CD-3 ZONING DISTRICTS IN THE MIDDLE BEACH AREA, THROUGH PROMOTION, MANAGEMENT, MARKETING, AND OTHER SIMILAR SERVICES. • WHEREAS, Miami Beach's Middle Beach neighborhood is primarily accessed via 41st Street, a major east-west thoroughfare and commercial corridor largely flanked by low-scale, commercial properties featuring street-level retail establishments; and WHEREAS, the Steering Committee of 41st Street property owners (the "Steering Committee") represents a group of owners of commercial real estate in the vicinity of, or located in the 41st Street area, generally bounded by 42nd Street on the north, Indian Creek Drive on the east, 40th Street on the south, and Alton Road on the west; and WHEREAS, Chapter 170, Florida Statutes, authorizes any municipality, subject to the approval of a majority of the affected property owners, to levy and collect special assessments against property benefited for the purpose of stabilizing and improving retail business districts, wholesale business districts, or nationally recognized historic districts, or any combination of such districts, through promotion, management, marketing, and other similar services, in such•districts of the municipality; and . WHEREAS, the Steering Committee seeks to work with the City of Miami Beach to establish a business improvement district, which is a type of special assessment district created under Chapter 170, Florida Statutes, to stabilize and improve the 41st Street retail business district through promotion, management, marketing, and other similar services. NOW,THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the Offices of the City Manager and City Attorney to work with the Steering Committee of 41st Street commercial property owners, for the purpose of establishing a special assessment district, pursuant to Chapter 170, Florida Statutes,to stabilize and improve the 41st Street retail business district, which is located within the CD-1 and CD-3 zoning districts in the Middle Beach area, through promotion, management, marketing, and other similar services. PASSED and ADOPTED this ad day of Dal/ , 2022. ATTEST: 12--z " OCT 272022 Dan Gelber, Mayor Rafael E. ranado, City Clerk APPROVED AS TO t��Ba�.. FORM&LANGUAGE _ti�P -'" c�'�,, &FOR EXECUTION (Sponsored by Commissioner Steven Meiner) �'`1 7-:5"''4 t 'IliCORPc°RATED' ? 1 U—ICI—Z.Z t Page 969�'c ;�1 °' City Attorney Date Resolutions-C7 E MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: October 26,2022 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,AUTHORIZING THE OFFICES OF THE CITY MANAGER AND CITY ATTORNEY TO WORK WITH THE STEERING COMMITTEE OF 41ST STREET COMMERCIAL PROPERTY OWNERS, FOR THE PURPOSE OF ESTABLISHING A SPECIAL ASSESSMENT DISTRICT, PURSUANT TO CHAPTER 170, FLORIDA STATUTES, TO STABILIZE AND IMPROVE THE 41ST STREET RETAIL BUSINESS DISTRICT, WHICH IS LOCATED WITHIN THE CD-1 AND CD-3 ZONING DISTRICTS IN. THE MIDDLE' BEACH AREA, THROUGH PROMOTION, MANAGEMENT, MARKETING,AND OTHER SIMILAR SERVICES. RECOMMENDATION Approve the Resolution which is sponsored by Commissioner Meiner. BACKGROUND/HISTORY Miami Beach's. Middle Beach neighborhood is accessed via 41 Street, a major east-west thoroughfare and commercial corridor. The 41 Street corridor is largely flanked by low-scale, commercial properties featuring street level retail. The corridor also features nearby schools, and houses of worship. The business environment is primarily characterized by medical and professional services offices, restaurants,and other retail uses. The Steering Committee of 41 Street property owners (the "Steering Committee"), represents a group of owners of commercial real estate located in the 41 Street area which area is generally bounded by 42 Street on the north, Indian Creek Drive on the east, 40 Street on the south, and Alton Road on the west. The Steering Committee is seeking to form a 41 Street Business Improvement District, a special assessment district. ANALYSIS Chapter 170, Florida Statutes,,authorizes any municipality, subject to the approval of a majority of the affected property owners, to levy, and collect special assessments against property benefited for the purpose of stabilizing and improving retail business districts, wholesale business districts, or nationally recognized historic districts, or any combination of such districts, through promotion, management, marketing, and other similar services, in such districts of the municipality. Page 278 of 1166 Page 970 of 1292 The Steering Committee seeks to work with the City of Miami Beach to establish a special assessment district under Chapter 170, Florida Statutes, to stabilize and improve the 41 Street commercial business district through promotion, management, marketing, and other similar services. SUPPORTING SURVEY DATA According to the 2022 City of Miami Beach Community Satisfaction Survey, when businesses were asked which areas of support would most help advance their business, 22.4% of respondents identified marketing, branding, and social media, which are all services that BIDs provide to their members. FINANCIAL INFORMATION There is no fiscal impact to the City. CONCLUSION The Administration therefore recommends that the Mayor and City Commission approve the resolution authorizing the City Manager's Office and the City Attorney's Office to work with the Steering Committee for purposes of establishing a 41 Street special assessment district, pursuant to Chapter. 170, Florida.Statutes. Applicable Area Middle Beach is this a"Residents Right Does this item utilize G.O. to Know" item,pursuant to Bond Funds? City Code Section 2-14? Yes No Strategic Connection Prosperity-Revitalize targeted areas and increase investment. Legislative Tracking Economic Development Sponsor Commissioner Steven Meiner ATTACHMENTS: Description n Resolution Page 279 of 1166 Page 971 of 1292 415t Street Business Improvement District Methodology and Services The 41st Street retail corridor in Miami Beach is a vital thoroughfare that connects people and businesses throughout the area. As the community continues to evolve, it has become clear that there is a need to create a Business Improvement District(BID or District)to transform 41st Street into a thriving commercial hub that better serves the surrounding community and visitors. The BID's purpose is to provide funding for services that will support the growth and vitality of the 41st Street Corridor, including economic development, advocacy initiatives, and monitoring of the General Obligation Bond and master planning for the District. The BID's vision for the future is one that prioritizes both residential and business needs,creating a diverse mix of businesses and amenities that cater to everyone. The goal is to create a synergy among tenants that attracts a variety of merchants and uses. The 41st Street BID encompasses 62 properties,generally bounded on the west by Alton Road,on the east by Indian Creek Canal, and consisting of properties abutting West 41st Street/Arthur Godfrey Road. Of these 62 properties, 42 properties have a Lot Size Ground Floor Retail Use of 50% or more of ">_ 50% Retail", while 20 properties have a Lot Size Ground Floor Retail Use of less than 50% "<50% Retail".The BID recognizes that a diverse mix of businesses and amenities is necessary to cater to the needs of the community and attract a variety of merchants and uses.Therefore,the BID will work to provide services and resources that benefit all properties within the District, in a manner that is proportionate to the special assessments levied. Assessment Methodology To ensure fairness and equity, the proposed special assessments will be levied upon properties in a manner that is proportionate to the special benefit derived by each property, based on its ground floor use.The assessment rate for each property is determined based on the property's primary ground floor use. Retail establishments,which are defined as properties used for marketing and selling consumer goods and services, as well as restaurants, will derive a greater special benefit from the BID's services and, as such,will be assessed at a higher rate.The term "retail"shall exclude offices and medical uses,which will derive a reduced special benefit from the BID's services. • z 50%Retail: Properties with 50%or more of Lot Size Ground Floor Retail Use will be assessed at the rate of$.50/SF of Lot Size • <50%Retail: Properties with less than 50%of Lot Size Ground Floor Retail Use will be assessed at the rate of$.25/SF of Lot Size. Biennial Increase To ensure that the BID's budget can grow during crucial impact periods expected over the BID's 10-year lifespan, the special assessments will increase biennially by 5%. This will allow the BID to continue to provide valuable services to the District and promote economic growth and vitality. 1 Page 972 of 1292 41st Street Business Improvement District Methodology and Services Services to be Provided In year one,the 415t Street BID will prioritize the development of a strong foundation for the future of the District. This includes the creation of a website and marketing plan to promote and enhance economic vitality in the area. Additionally, the BID is committed to advocating for the interests of businesses and property owners within the District by working in a unified voice to establish positive and productive relationships with the City of Miami Beach. To achieve our goal of advocating for the interests of businesses and property owners within the District, the BID is committed to working in a unified voice to establish positive and productive relationships with our municipal stakeholders. This includes efforts as they pertain to the General Obligation Bond and master planning for the 41st Street Corridor. Expenses related to advocacy will be allocated towards promoting and advocating for the district's interests,including attending meetings,and hiring consultants or lobbyists. Additionally, expenses may be allocated towards media and advertising campaigns to increase awareness. As the district evolves and changes over the 10-year lifespan of the BID, services will adapt to meet the evolving needs of the District. This may include expanding marketing efforts to attract new businesses, implementing new programs to improve the district's safety,walkability,and accessibility,and advocating for new policies that benefit the district. The 41st Street BID is dedicated to ensuring that the District remains a vibrant and thriving hub for the community,now and into the future. 2 Page 973 of 1292 41sY Street Business Improvement District Corridor Estimated Budget ESTIMATED REVENUE 1.Assessment Revenue $195,246.25 ESTIMATED EXPENSES 1.Administrative Expenses Executive Director,including benefits $90,000.00 2.Office Expenses Internet $1,000.00 Liability insurance $5,000.00 Office supplies $1,500.00 Postage $1,000.00 Printing $1,000.00 Equipment lease and/or purchase $1,500.00 Cell phone $1,000.00 Accounting fees $4,000.00 Audit fees $3,000.00 Legal fees $1,000.00 Officers/directors insurance $1,000.00 Occ. License $400.00 Meeting expenses $600.00 Total Administrative&Office Expenses: $112,000.00 3. BID Services Branding and Marketing $20,000.00 Advocacy $11,246.25 Total Marketing Expenses $31,246.25 4.General Expenses BID Steering Reimbursement $52,000.00 Total General Expenses $52,000.00 Year One BID Expenses $195,246.25 1 Page 974 of 1292 415t Street Business Improvement District Corridor Estimated Budget The revenues in the proposed budget ($ 195,246.25) represent, the total amount of the special assessments to be collected in the first year of the special assessment district, as detailed in the Preliminary Assessment Roll. Administrative and Office Expenses $112,000.00 Administrative and office expenses for the first year of the special assessment district shall total $112,000.00. • Staffing costs, including employment benefits,for an Executive Director,$90,000.00. • Office expenses for liability insurance, supplies, postage, printing, equipment lease(s), annual report, audit, cell phone, accounting, and directors and officers liability insurance shall total $22,000.00. Branding and Marketing $20,000.00 The 415t Street BID will develop a website and a marketing plan to promote and enhance the economic vitality of the district. The website will serve as a platform for promoting businesses within the BID, while the marketing plan will outline the strategies and tactics that will be used to achieve this goal. Advocacy $11,246.25 Expenses related to advocacy initiatives will be allocated towards promoting and advocating for the district's interests, including engaging officials,attending meetings, hiring consultants or lobbyists, and advocating for policies or legislation that would benefit businesses and property owners within the BID. Additionally, expenses may be allocated towards media and advertising campaigns to increase awareness. Other Expenses $52,000.00 During the first year of the 415t Street BID's operation, the property owners who contributed to the costs of the BID's formation will be reimbursed their contributions. Total District Expenses: $195,246.25 2 Page 975 of 1292 Iiit.4014 . :7°,-..1,,,, Atko di vr- :, .,„,. ....,. :A. s.., - .4.- -7.., --....4,.;,* 1... ,, c - -\, !d{ • - ti' t ').per 1 ,P ,t '°'"{0`.+l r jE ,., "f`1"• y ,�"a r, to .0 r- i j ." -. - ' , 1 1""; - :0440.1" " 1 . i " JR 411411,4r i , + r'. -ie ! I Y { .. .,, ,oar _. 4' lk, • e 0., , 444 L ju c { "IP",II a' d 4 y I . ... ' ill 1, 1 1 ,11 tue . ! g.: � "l ‘ * r A n t ,•+Y. i' .r/' l�r 'r. � • _ a"gl .haW1Z n AM . 4, 1• �f ©e,1 ST sr {t4 Yll . `r A 11 , r Q f,m • " pia < it a "-M PP' awe o t ± '� , .. .. FY i. ti, i :' li f '�,©Q77sr " � ^, -°s�f { f 1. .4r- ::::-,,,if,.1,. 2 ¢ IfW S➢�rN sr M L�'{"' Yv.J, !'' r x.. ( tin ai e. * p r .6 ': , t tr k ' .�:, +��s,, , r t. { � , ��..� • wt - [a ; ,:4„ -a...: is +f �' �,Y�t yyrf � - -. y lb J.... itike • 1 9q RR 1 e,4Liii` e �y} I �.'u r a . .., J ` Ai ,, , ,- ,'j T +!„ 9 ,j W 3.rN sr _ .y _ I ,� *%At AA if eml Beach S.•RM.Works Department•1700 convention Center Dn. Bean Bea FL33139.3056737000•e.@miamib hv ic eachf.pov• ww.Maoar Echf.pov ^ W �e rna 3 Subject Area 41st Street Business Improvement District :GISg� I NI � mp{mm— :s's w ' Miami Beach L I Properties with 50%or More of Lot Size Ground Floor Retail Use L I Residential Properties Not Included in the District ,*,{� " + 7..: sMiami-Dade Count ,FL.r nose..ao a°�° y Properties with<50%of Lot Size Ground Floor Retail Use -Government and Religious Properties Not Included in the District • MIAMISEAC 41st Street BID Assessment Roll >50%Retail: Assessment Rate=$.50 x Lot Size <50%Retail: Assessment Rate=$.25 x Lot Size Assessment Totals: Year 1(2023)Totals: $195,246.25 Year 3(2025)Totals: $205,008.56 Year 5(2027)Totals: $215,258.99 Year 7(2029)Totals: $226,021.94 Year 9(2031)Totals: $237,323.04 Property Information Assessment Rate Biennial Uptick Properties with 50%or more of Lot Size Ground Floor Retail Use: $0.50 Assessment Rate Details Year 3 Uptick(2025) Year s Uptick(2027) Year 7 Uptick(2029) Year 9 Uptick(2O31) Properties with<50%of Lot Size Ground Floor Retail Use: $0.25 Folio Owner Ground Floor Catexory Address Lot Size(SoFti Assessment Total: Uptick Rate:5% Uptick Rate:5% Uptick Rate:5% Uptick Rate:5% North side of 41st Street(moving eastward from Alton Rd) GILLER GROUP LTD I 02-3222-019-0340 %THE GILLER BUILDING <50%Retail 975 W 41 ST 11057 $0.25 $2,764.25 $2,902.46 $3,047.59 $3,199.96 $3,359.96 BECHOR TRUST FUND 2 02-3222-019-0370 LLC <50%Retail 935 W 41 ST 5000 $0.25 51,250.00 51,312.50 $1,378.13 $1,447.03 $1,519.38 JOAN ERDHEIM& 3 02-3222-019-0380 ROBERT BALDGH TRS <50%Retail 925 W 41 ST 5000 $0.25 $1,250.00 $1,312.50 $1,378.13 $1,447.03 $1,519.38 4 B20:R37B20:T411320: GATOR-JAG INC >50%Retail 915 W 41 ST 5000 $0.50 $2,500.00 $2,625.00 $2,756.25 $2,894.06 $3,038.77 BLOCK 41ST STREET INC %GADCO REAL ESTATE 5 02-3222-019-0400 CO INC >50%Retail 901 W 41 ST 10000 $0.50 $5,000.00 $5,250.00 $5,512.50 $5,788.13 $6,077.53 I F.ARIHUN GUUI KEY LLC C/O TRIFECTA PARTNERS 827 ARTHUR 6 02-3222-019-0220 INC >50%Retail GODFREY RD 5000 $0.50 $2,500.00 $2,625.00 $2,756.25 $2,894.06 $3,038.77 MBMB CAPITAL 825 ARTHUR 7 02-3222-019-0230 PARTNERS LLC <50%Retail GODFREY RD 5000 $0.25 $1,250.00 $1,312.50 $1,378.13 $1,447.03 $1,519.38 FG 801 ARTHUR GODFREY OWNER LLC 8 02-3222-019-0240 C/O FIFTEEN GROUP <50%Retail 801 W 41 ST 14010 $0.25 $3,502.50 $3,677.63 $3,861.51 $4,054.58 $4,257.31 ROMA INVESTMENTS II 777 ARTHUR 9 02-3222-014-0410 INC <50%Retail GODFREY RD 9000 $0.25 $2,250.00 $2,362.50 $2,480.63 $2,604.66 $2,734.89 10 02-3222-017-0200 767 41 STREET CORP <50%Retail 767 W 41 ST 6105 $0.25 51,526.25 $1,602.56 $1,682.69 $1,766.83 $1,855.17 DABBY PROPERTIES 11 02-3222-017-0210 %AUERBACH ASSOC INC >50%Retail 761W 41 ST 4524 $0.50 $2,262.00 $2,375.10 $2,493.86 $2,618.55 $2,749.48 12 02-3222-017-0220 757 W 41 STREET LLC <50%Retail 757 W 41 ST 3330 $0.25 $832.50 $874.13 $917.83 $963.72 $1,011.91 13 02-3222-017-0230 ARM VENTURES LLC >50%Retail 753 W 41 ST 3330 $0.50 $1,665.00 $1,748.25 $1,835.66 $1,927.45 $2,023.82 Page 977 of 1292 " n n n 4 m n 3 m 2 N mm m ^ n � e ^ 'N m go. r o N n•n o0 E m 5v a " � i N o m � m g^ nry N o nini N N - ▪ - N v. 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O 8 8 O O O O O O a p O O O O O N t O, ~ O O O O 0 t t O O O O O O o 'd O NO mO M O m N N N m m m m m m m m m m m m m m m Nm m N m m m m fN O O O O O O O O O O O O O O O O O O O O O O O O O O 3 4 2 r^-1 C'0 O1 2 n O m m m a A N N N N N 4 N N 2 M 2 M M M M M tYl 40 02-3222-019-0141 TD BANK N A >5096Retail 851 W 41 ST 2,036 $0.50 $1,018.00 $1,068.90 $1,122.35 '51,178.46 $1,237.39 BURGER KING CORP#38 ATT:PROPERTY TAX 910 ARTHUR 41 02-3222-019-0150 ACCOUNTANT >50%Retail GODFREY RD 20300 $0.50 $10,150.00 $10,657.50 $11,190.38 $11,749.89 $12,337.39 820 ARTHUR 42 02-3222-019-0190 TZIPORAH 820 LLC <50%Retail GODFREY RD 5950 $0.25 $1,487.50 $1,561.88 $1,639.97 $1,721.97 $1,808.07 43 02-3227-015-0260 78041 LLC >50%Retail 780 W 41 ST 11400 $0.50 $5,700.00 $5,985.00 $6,284.25 $6,598.46 $6,928.39 44 02-3227-016-0820 245 EAST EIGHTH LLC >5096Retail 770 W 41 ST 21538 $0.50 $10,769.00 $11,307.45 $11,872.82 $12,466.46 $13,089.79 i 45 02-3222-004-0010 NOAM 744 LLC >50%Retail 744 W 41 ST 12294 $0.50 $6,147.00 $6,454.35 $6,777.07 $7,115.92 $7,471.72 726 ARTHUR 46 02-3222-004-0020 K I F A PROPERTIES LLC >50%Retail GODFREY RD 2250 $0.50 $1,125.00 $1,181.25 $1,240.31 $1,302.33 $1,367.44 CVS 2893 MIAMI LLC C/O CVS PHARMACY INC 700 ARTHUR 47 02-3222-004-0030 #289301 >50%Retail GODFREY RD 26169 $0.50 $13,084.50 $13,738.73 $14,425.66 $15,146.94 $15,904.29 48 02-3227-017-1360 MURIEL LAND LLC >50%Retail 546W 41 ST 5063 $0.50 $2,531.50 $2,658.08 $2,790.98 $2,930.53 $3,077.05 49 02-3227-017-1350 540 RETAIL LLC <50%Retail 540 W 41 ST 4800 $0.25 $1,200.00 $1,260.00 $1,323.00 $1,389.15 $1,458.61 50 02-3227-017-1340 530 AGR LLC >50%Retail 530W 41 ST 5100 $0.50 $2,550.00 $2,677.50 $2,811.38 $2,951.94 $3,099.54 524 ARTHUR 51 02-3227-017-1330 AARON REALTY CORP >50%Retail GODFREY RD 5900 $0.50 $2,950.00 $3,097.50 $3,252.38 $3,414.99 $3,585.74 518 ARTHUR GODFREY 52, 02-3227-017-1320 ROAD INC >50%Retail 514 W 41 ST 5033 $0.50 $2,516.50 $2,642.33 $2,774.44 $2,913.16 $3,058.82 SUNSHINE DADE INVEST 53 02-3227-017-1310 LLC >50%Retail 508 W 41 ST 6591 $0.50 $3,295.50 $3,460.28 $3,633.29 $3,814.95 $4,005.70 DELANCEY PROPERTIES 54 02-3227-017-1240 INC >5096Retail 460 W 41 ST 10700 $0.50 $5,350.00 $5,617.50 $5,898.38 $6,193.29 $6,502.96 55 02-3227-017-1230 RAJAMIM LLC >5096Retail 456 W 41 ST 5500 $0.50 $2,750.00 $2,887.50 $3,031.88 $3,183.47 $3,342.64 56 02-3227-017-1220 ZEIDYS LLC >50%Retail 450 W 41 ST 2875 $0.50 $1,437.50 $1,509.38 $1,584.84 $1,664.09 $1,747.29 57 02-3227-017-1210 432 W 41 ST LLC >50%Retail 444W 41 ST 2950 $0.50 $1,475.00 $1,548.75 $1,626.19 $1,707.50 $1,792.87 58 023227-017-1180 432 W 41 ST LLC >50%Retail 428 W 41 ST 15790 $0.50 $7,895.00 $8,289.75 $8,704.24 $9,139.45 $9,596.42 59 02-3227-017-1170 432 W 41 ST LLC >50%Retail 416 W 41 ST 6850 $0.50 $3,425.00 $3,596.25 $3,776.06 $3,964.87 $4,163.11 60 02-3227-017-1160 RMET SHERIDAN LLC <50%Retail 410 W 41 ST 14500 $0.25 $3,625.00 $3,806.25 $3,996.56 $4,196.39 $4,406.21 JEFFERSON PLAZA PTNRS 300 ARTHUR 61 02-3227-017-1120 LTD <50%Retail GODFREY RD 26640 $0,25 $6,660.00 $6,993.00 $7,342,65 $7,709.78 $8,095,27 SILVER TREE INC 62 02-3226-002-0390 %WALGREEN CO#3942 <50%Retail 4049 PINE TREE DR 43555 $0.25 $10,888.75 $11,433.19 $12,004.85 $12,605.09 $13,235.34 Year 1(20231 Totals Year3(20251 Totals Year 5(2027)Totals Year 7(20291 Totals Year 9(20311 Totals `,-"777$195:246i25777717-74)dP._y+.r$205;00856 .V2*'_:i$215;258997''"17—'$226;021!94 ":I"'7 "'$237,323.04"'''''-'I Page 979 of 1292